Construction, Forestry and Maritime Employees Union

[2024] FWCA 1898

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Construction, Forestry and Maritime Employees Union

(AG2024/1645)

ML CIVIL GROUP PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) SUBCONTRACTORS EARTHMOVING, EXCAVATION AND DRAINAGE ENTERPRISE AGREEMENT 2020-2023

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 28 MAY 2024

Application for approval of the ML CIVIL GROUP PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Earthmoving, Excavation and Drainage Enterprise Agreement 2020-2023

An application has been made for approval of an enterprise agreement known as the ML CIVIL GROUP PTY LTD and the CFMEU (Victorian Construction and General Division) Subcontractors Earthmoving, Excavation and Drainage Enterprise Agreement 2020-2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by the Construction, Forestry and Maritime Employees Union. The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

The Construction, Forestry and Maritime Employees Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 4 June 2024. The nominal expiry date of the Agreement is 31 May 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter under consideration involved the Construction, Forestry and Maritime Employees Union, representing a group of employees, and ML Civil Group Pty Ltd, an employer. The dispute pertained to the application for approval of the ML Civil Group Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Earthmoving, Excavation and Drainage Enterprise Agreement 2020-2023. The case was heard by the Fair Work Commission, an industrial relations tribunal in Australia.

The primary legal issue before the Commission was whether the proposed enterprise agreement met the necessary criteria for approval under the Fair Work Act 2009. Specifically, the Commission needed to determine if the agreement complied with the procedural requirements and if it provided for the fair treatment of employees and employers. This included assessing whether the agreement met the 'better-off-overall test', which requires that employees be no worse off financially and, ideally, better off overall under the terms of the agreement compared to their existing conditions.

In delivering its decision, the Commission considered the submissions from both parties, the evidence presented, and the statutory framework governing enterprise agreements. The Commission found that the agreement complied with all procedural requirements and met the 'better-off-overall test'. It was noted that the agreement provided for improved conditions for employees, including wage increases and better working conditions, while also maintaining a fair balance between the interests of both parties. Consequently, the Commission approved the enterprise agreement, finding it to be in the best interests of the employees and the employer.

The Fair Work Commission's final order was the approval of the ML Civil Group Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Earthmoving, Excavation and Drainage Enterprise Agreement 2020-2023, which would now be binding on the employees and the employer for the specified period.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established